a16z leads Tessera Labs Series A: 6-person AI team replaces 60 SAP consultants

According to Beating Monitoring, AI system integration company Tessera Labs has completed Series A funding, led by a16z.
Founded in 2024, this company uses a multi-agent platform to replace traditional consulting firms’ ERP migration work, with an initial focus on upgrading from SAP ECC to S/4HANA.

Founder Kabir Nagrecha entered the University of California, San Diego at age 13, earned a computer science degree at 17, and graduated with a Ph.D. at 20, having previously conducted research at Meta. a16z states that his doctoral advisor described him as “the strongest graduate student I have mentored.”
In 18 months since its founding, the company has signed several annual contracts worth millions of dollars, with a team of over 30 people.

Standard support for SAP ECC will end in 2027, and approximately 10k ECC environments worldwide need to be migrated within the next three years. Large SAP migrations typically take 3 to 5 years and cost between $100 million and $500 million, with about 70% of large transformation projects failing to meet expectations. Nagrecha states that Tessera’s agent system can analyze a client’s ECC environment line-by-line, automatically classify each component as retain, replace, or retire, then generate S/4HANA code, test data migration, and orchestrate the switch-over process. A team of six can complete in two years what previously required 60 consultants.

Unlike tools on the market that “add auto-completion for consultants,” Tessera directly does the work with software and prices based on results. Nagrecha believes that traditional system integrators like Accenture and Deloitte build their entire business model on hourly billing, and shifting to software delivery would shrink revenue from a single migration by an order of magnitude, representing a typical innovator’s dilemma.